Solved

Grammy's Bakery Had the Following Information for the Pay Period

Question 28

Multiple Choice

Grammy's Bakery had the following information for the pay period ending June 30: Grammy's Bakery had the following information for the pay period ending June 30:     FICA-OASDI applied to the first $106,800 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Given the above information, what would be the amount applied to Kitchen Salaries Expense? A) Debit $12,000 B) Credit $12,000 C) Debit $2,000 D) Credit $2,000 Grammy's Bakery had the following information for the pay period ending June 30:     FICA-OASDI applied to the first $106,800 at a rate of 6.2%. FICA-Medicare applied at a rate of 1.45%. FUTA applied to the first $7,000 at a rate of 0.8%. SUTA applied to the first $7,000 at a rate of 5.6%. State income tax is 3.8%. Given the above information, what would be the amount applied to Kitchen Salaries Expense? A) Debit $12,000 B) Credit $12,000 C) Debit $2,000 D) Credit $2,000 FICA-OASDI applied to the first $106,800 at a rate of 6.2%.
FICA-Medicare applied at a rate of 1.45%.
FUTA applied to the first $7,000 at a rate of 0.8%.
SUTA applied to the first $7,000 at a rate of 5.6%.
State income tax is 3.8%.
Given the above information, what would be the amount applied to Kitchen Salaries Expense?


A) Debit $12,000
B) Credit $12,000
C) Debit $2,000
D) Credit $2,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions